I am not expecting a derating as such. Even though this company has amazing fundamentals and a very clean management, I don’t think current valuations are even close to fair valuation.
I am expecting a time correction and let the fundamentals catch up to these stock valuations. And if not, if there is a price correction, that is even better. Polycab, which is a much bigger player in this category, has a PE close to 50. KEI is now at 70.
As of now, price is running ahead of Fundamentals and this is not sustainable.
| Subscribe To Our Free Newsletter |
